What are the requirements of AIR Section III requiring borrower receipt of the appraisal?
AIR requires that a borrower be provided a copy of the appraisal no less than three business days prior to the closing of the loan. AIR allows for the borrower to waive the three-day requirement. Situations in which a borrower is unaware of his or her right to a copy of the appraisal prior to the three days and is then provided a waiver of that right at the closing table would not be compliant with the intent of AIR. The time period of rescission in a refinancing situation does not constitute a valid three-day waiver period. AIR does not specify what form the waiver must take or whether it be oral or written. In addition, AIR does not prohibit that a waiver, given in a timely manner, be recorded at some later point when the parties are available. Each lender must develop its own policies, procedures, and documentation. For example, a lender may obtain a waiver from a borrower through an e-mail, phone call, or some other means, prior to the three-day period, and then have that waiver re
Related Questions
- Section III allows the borrower to waive the three-day requirement for receiving a copy of the appraisal. What is an acceptable procedure if the borrower chooses to waive the three-day requirement?
- Does Section III require the lender to provide the borrower with the appraisal free of charge?
- What are the requirements for the borrower’s receipt of the appraisal?
